BAKU, Azerbaijan, June 12. Malaysian Prime Minister Anwar Ibrahim is set to visit Turkmenistan in mid-June. Announcing the upcoming trip during a public speech on June 7, he said that one of its key objectives would be the signing of a production sharing agreement (PSA) that would pave the way for the participation of Malaysia’s state-owned energy company PETRONAS in the development of the giant Galkynysh gas field.
For his part, Chairman of the Halk Maslahaty (Parlieament) of Turkmenistan Gurbanguly Berdimuhamedov described the planned agreement between Turkmennebit and PETRONAS in May as “strategically important for expanding long-term energy cooperation between the two countries.”
Against this backdrop, the very fact that the negotiations have been elevated to the highest political level highlights their strategic importance for both sides. According to statements from the Malaysian side, the primary purpose of the visit is to advance energy cooperation, while a number of arrangements between PETRONAS and Turkmen entities have already been worked out at the technical level. Discussions on the parameters of cooperation in gas projects have previously taken place through contacts between the relevant companies, including Turkmennebit and PETRONAS, indicating a gradual transition from technical negotiations to the political and diplomatic formalization of the deal.
Additional political momentum has also come from the Turkmen side. In his public statements, former President and Chairman of the Halk Maslahaty Gurbanguly Berdimuhamedov has repeatedly emphasized the country’s interest in expanding international energy cooperation and attracting major foreign partners to the development of strategic deposits, including Galkynysh.
Meanwhile, Galkynysh itself remains one of the largest gas fields in the world. According to an assessment by British consultancy Gaffney, Cline & Associates, the field’s reserves, together with the adjacent Yashlar and Garakel deposits, amount to approximately 27.4 trillion cubic meters of natural gas, making it one of the world's largest gas accumulations. At the same time, it is also among the most technically challenging fields to develop. The project's high capital requirements and technological complexity effectively necessitate the involvement of external financing and expertise, making the PSA model one of the most suitable mechanisms for its development.
For PETRONAS, potential participation in the Galkynysh project would represent a significant expansion of its international upstream portfolio and strengthen the company’s position in one of the largest gas clusters outside Southeast Asia. The Malaysian energy giant already has a long-standing operational presence in Turkmenistan, where its offshore production-sharing agreement was previously extended until 2050.
For Turkmenistan, the prospective deal reflects a broader trend toward increasing the role of foreign investment in the national economy. According to Turkmenistan’s Minister of Finance and Economy Mammetguly Astanagulov, the share of foreign investment in the country exceeds 10%, pointing to growing participation of external capital in the investment structure of the economy and the emergence of a more diversified model for financing large-scale projects.
In this context, a potential PSA with PETRONAS can be viewed as part of Ashgabat’s broader strategy to attract long-term partners to technically complex energy projects without altering the state’s ownership model over natural resources.
From Malaysia’s perspective, participation in the Galkynysh negotiations also carries broader macroeconomic significance. PETRONAS serves not only as a commercial operator but also as a key instrument of the country's international economic presence. Expanding the company’s involvement in major overseas projects strengthens Malaysia’s resource base and enhances its standing in global energy markets, particularly amid growing competition for long-term gas assets.
At this stage, negotiations surrounding Galkynysh demonstrate the parties’ efforts to find a framework that would allow Turkmenistan to attract additional investment and technology for the development of a strategic field, while enabling PETRONAS to strengthen its position in one of the world’s most significant gas projects. The outcome of the visit could serve as an indicator of whether energy cooperation between the two countries is entering a new phase, where economic considerations are increasingly complemented by broader strategic interests.
